lecture 3

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School

Ryerson University

Department

Information Technology Management

Course

ITM 100

Professor

Ron Babin

Semester

Summer

Description

Chapter 4
• ICT ex: Blockbuster going out of business b/c of Netflix
• Value Chain- sells something putting val into raw material
o Connected series of activities adds val to firms
o transaction - exchange of goods or services (value) between two or more
parties
o Primary activities - production and distribution of the org products/
services create business value for the org and customers (obtaining raw
materials, creating the new product)
o Support activites
organization conducts to support the creation of business value
Firm infrastructure (which we will call administration)
Technology development
Human resource (HR) management hire, fire
procurement
around money (finance and accounting)
o Inbound logistics include activities such a raw material procurement and
warehousing
o Operations activities required to create a product/ service and make it
available to marketplace
o Outbound logistics involve warehousing and distribution of finished goods
o Marketing and sales investigates what customers need and products/
services to meet their needs
o Customer relationship management (CRM) provides the tools to service
customers better
o Administration and finance systems are aimed at automating and
optimizing administrative processes to reduce costs and ensure efficiency
o Human resources is responsible for recruiting, hiring, training and
compensation
o Technology development supports the value-creating activities of the
organization such as Intranet
www.notesolution.com o Raw materials necessary for the product or service are acquired in the
procurement process
o Info tech – no org can operate w/out IT
o MONEY, PPL, TECH are support functions pg 133
o Shares make profit
o Mark up water + coffee =
o Something delivered/ exchanged funds b/ 2 parties
o Support activities sales, admin,
o Org val cahin sum of primary and support
o Apple looks at what they’re good at and outsource don’t manufaction
apples core competency and activates can purse gain competitive adv
o Ex: beer store, Ryerson admin process, purchasing apple iPod
o Buy yeast, use water, pay tax b/c primary resource is 2cents worth of water,
containers, put everything in tub and then ship it to store, sell when hot and
dry, looks at stock
o Just in time manufacturing when you order they make it
o Reverse logistics getting things for you
o (inputs processes outputs)
www.notesolution.com • IT governance – who decides, what do they decide
• Risk management compliance and control – power fails, all org need to anticipate
and plan and org if something breaks
• Info systems- make more efficient
o Functional info systems – acc, hr, manufacturing, supply chain
Keeps track of acc transactions (how much money in/ out) : Quickin
hrIS – supports activates related to managing employees of org
• connected to accounting IS
acc and finance related –sources and uses of capital (shares, borrow
money) beg resources
• acc – debit/ credit
manufacturing IS – how many bags, how much weight (sugar cane)
processes and activities, subways
marketing IS – CRS, customers net worth, how we sell to them, how
makes decisions and how they buy our products
www.notesolution.com o workflow management systems - supports activities that several departments
of the organization may carry out.
Workflow -steps, organizational resources, input and output data, and
tools needed to complete a business process.
• Information and documentation are needed and generated at
each step
• computer program manages the process itself, such as
assigning the work, monitoring work progress
• allow users to work with and manage the processes and the
system itself.
• Administration and modelling tools pro- vide a means for users
to create and work with workflow models and definitions.
o management information and document management systems
meet the need of storing processed transaction data as reports for
managers.
Periodic reports – company’s annual financial statement
Exception reports - exceptions occur of key values, defined as critical
to the operation.
Demand reports - generated based on user requests
o Document management systems - recognize data management needs that re-
volved around business documents
documents electronically or convert them to electronic form using
imaging technology
more efficient and flexible
o knowledge management systems - how the company recognizes, generates,
manages, and shares knowledge
groupware - supports teamwork with technologies that enable
communication and sharing of data and information
clear business goals must drive the process for sharing relevant
knowledge
increase employee morale
www.notesolution.com o decision support systems - help businesses use communications technolo-
gies, knowledge, and models to organize and access data to perform decision-
making activities
Financial models—use financial mathematical models and financial
data to support financial decision making
Statistical models—use statistics and probability to describe or
forecast possible scenarios
Optimization models—incorporate relatively certain data into a
mathemati- cal model of a situation; solving the model helps to find
the “best” solution
Simulation modelling—a technique for conducting experiments that
test possible outcomes resulting from a quantitative model of a system
use data and parameters to help decision makers analyze a situation,
o Transaction processing systems
TPS application pic (textbook)
Scan barcode and calc tax,takes payment from credit card (Walmart,
Sobeys)
Transaction is automated
Know wats been bought and keep track of food/ inventory
Atm/ itm displaced labour cost
Moores law gets cheaper
o Supply chain management – integrate around world
integrates supply and demand management within and across
companies
supply chain - moving a product or service from supplier to customer
Send to factory, get in warehouse, and ship to destination
Making sure transactions
manages materials, information, and finances as they move from
supplier to manufacturer to wholesaler to retailer to consumer.
seek to optimize the supply chain to create business v